Who Pays the VAT for a New Car?
2 Answers
VAT is paid by the car owner. Clarify Requirements: When purchasing a new car, the owner should first clarify their needs, considering the model, brand, and budget. For example: micro cars, compact cars, sedans, SUVs, MPVs, pickup trucks, etc. Different models vary significantly in price, so selection should be based on personal budget and capability. Understand the Car: When choosing a new car, it's important to review the car's specifications and configurations, such as size, body structure, wheelbase, front and rear track, ground clearance, engine power, comfort features, etc. Larger length, width, and height measurements indicate a larger exterior profile, which may require more driving skill.
As a car owner who frequently purchases vehicles, I can share some insights. The value-added tax (VAT) is essentially that tax you pay when buying a car, which ultimately falls on the purchaser. I remember when I changed to a new car last year, the salesperson calculated the total price for me before signing the contract, and it already included VAT, meaning part of what I paid went to the state as tax. The dealer merely collects and remits the tax, handling it all during invoicing. It's crucial to factor this into your car-buying budget to avoid overspending. Many people ask about this when buying a new car—it does affect the total cost, but don't worry, you can negotiate a lower price to indirectly reduce the tax burden. After all, with transparent car pricing, the tax can't be hidden, and it's legally mandated that we foot the bill ourselves.
